The Novonix Ltd (ASX: NVX) share price was in sensational form in October.

During the month, the battery materials and technology company’s shares jumped a massive 52%.

This was many times greater than the strong 6% gain recorded by the ASX 200 index over the same period.

Why did the Novonix share price rocket higher?

The main driver of this gain was the release of an announcement which revealed that Novonix could receive some major government funding.

According to the release, Novonix’s Anode Materials division was selected to enter negotiations to receive US$150 million (A$240 million) in grant funding from the US Department of Energy (DOE). Under the terms of the grant, the government funds must be at least matched by the recipient.

If successful, these funds would be dedicated to the construction of a 30,000 tonnes per annum (tpa) US manufacturing facility, including site selection, plant layout, and engineering design with capability for additional expansion.

Novonix’s co-founder and CEO, Dr Chris Burns, believes this would be a big boost to its aim of accelerating the domestic battery supply chain. He said:

We are proud to have been selected to negotiate this funding in recognition of our readiness to accelerate the domestic battery supply chain and meet growing global demand from the electric vehicle and stationary grid storage markets.

Can its shares keep rising?

Despite its stellar gains, the team at Morgans sees value in the Novonix share price at the current level. Though, only for investors with a higher tolerance for risk.

It currently has a speculative add rating and $3.11 price target. This compares to the latest Novonix share price of $2.60, implying potential upside of 20% over the next 12 months.

The post Why did the Novonix share price jump 50% in October? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price gaining today?
• Why is the Novonix share price tanking 5% today?
• A major shareholder sold off most of its Novonix shares last week. What’s happening?
• Novonix shares go for a swim after burning through $25 million
• Why $6.5b Argo Investments is backing these ASX 200 lithium shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Endeavour Group Ltd (ASX: EDV) share price has seen plenty of volatility over 2022. It’s actually up slightly over the year, but the company is down close to 17% since mid-August.

This is the business that was separated out of Woolworths Group Ltd (ASX: WOW). Endeavour has poker machines, hotels, and liquor retailers in its portfolio.

Government regulation and changes to the gambling industry could have an impact on Endeavour shares.

So, it’s important that investors know about what the New South Wales government is proposing.

Cashless gambling card on the cards?

The NSW government’s Racing Minister Kevin Anderson had introduced legislation to parliament according to reporting by the ABC, and various other media outlets.

The Crime Commission’s report into money laundering in pubs and clubs found that “dirty money was being funnelled through the gaming rooms of suburban pubs and clubs and recommended a cashless gaming card”.

Crossbench MP Alex Greenwich “planned to introduce an amendment to the legislation so it would include a cashless gaming card to address problem gambling and money laundering”, according to the ABC.

The original legislation didn’t have a proposal for a cashless gaming card.

There has reportedly been opposition in the industry to cashless cards, as well as from some within the government.

Greenwich was quoted by the ABC:

NSW is the gambling harm capital of the world, and clubs have become mini casinos where money laundering is rife.

Urgent action is needed, and that includes a transition to cashless cards in all gaming venues in NSW.

The ABC reported that it understands the plan is for the response to the commission’s report to be produced ahead of the March election, but won’t be in time to make legislative changes.

One particular measure would allow gamblers to set a ‘spending limit’ and “create a paper trail for criminals if they deposit the proceeds of crime into a bank account”.

NSW Crime Commissioner Michael Barnes suggested that the card should be mandatory.

The ABC reported that the Australian Hotels Association of NSW (AHA NSW) said the introduction of mandatory cashless gaming cards would be “unjustified overreach”, because the NCC found the use of poker machines to wash money was not widespread.

A three-month trial of a cashless gaming system was launched in Newcastle in October.

What does this mean for Endeavour?

According to reporting by NABTrade, the broker Jefferies said that if cashless gambling cards are implemented by the NSW government then the implications would be “impossible to estimate”.

Jefferies said cashless cards could increase Endeavour’s revenue because they are associated with increased expenditure.

The broker estimates that NSW accounts for around a fifth of Endeavour’s hotel earnings before interest and tax (EBIT).

It’s rated as a buy, with a price target of $8.20. However, a cashless card with pre-commitment and low default loss limits could have “material implications” for revenue and earnings. A change to regulations could also mean other states change their laws as well.

Endeavour share price snapshot

Over the last month, Endeavour shares are down around 2.5%. They are also down around 2% over the past 12 months but are up by a similar amount this year to date.

The post Could this help or hurt the Endeavour share price? appeared first on The Motley Fool Australia.

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More reading

• Why is the Endeavour share price having such a great start to the week?
• Why Endeavour shares could offer access to an ‘attractive asset’: expert

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This year has been a difficult one for many investment markets, including the ASX share market.

What’s the best time to buy during this volatility? If we had a crystal ball, that’d make it obvious where the bottom of the decline is.

Some readers may have heard of the phrase about trying to catch a falling knife. Something that has fallen by 50% from $1 to 50 cents could easily fall another 20% to 40 cents. Just because something has fallen heavily doesn’t mean it can’t keep falling.

One investment expert has shared a couple of tips on how to identify when we could have reached the bottom.

Are we there yet?

Lisa Shalett is the chief investment officer of wealth management at Morgan Stanley.

She believes that we are “not quite” at the bottom. Morgan Stanley’s global investment committee believes this latest bounce is “temporary, driven by technical factors, and that the bear-market bottom is still to come”.

Shalett pointed out that the decline in valuations we’re seeing is because of central banks increasing interest rates, rather than an economic crisis. This matters, in her opinion, because monetary policy was able to be used as an antidote to prior bear markets like the COVID-19 crash and the GFC.

This type of bear market tends to be “more prolonged”.

What could help drive a recovery for the (ASX) share market?

There were “at least two” necessary conditions for reaching the bottom.

Shalett explained:

First, inflation needs to reach a viable peak. We may reach that soon. Although uncertainty remains, we see solid indications of both softer demand and more supply, suggesting that inflation is poised to decelerate in the months ahead.

Importantly, while peak inflation, and in turn, peak policy rates, may be sufficient to bring the bond market to a bottom, that likely won’t be the case for stocks.

Stocks may need to fall farther, based on a sober assessment of year-ahead corporate earnings potential.

In other words, overly optimistic stock investors and Wall Street analysts must realistically factor in the potential depth and breadth of an economic slowdown and the consequent hit to employment and consumer demand. That forecast reset has just begun, yet the 2023­–2024 earnings picture is still far from clear.

Where are the opportunities?

Shalett said that investors should “remain patient” and avoid chasing index-level bear market rallies.

She suggested that businesses in healthcare, financials, energy, industrials and defensive, which have above-average dividend yields, could be promising.

However, investors might be missing out on opportunities by waiting too long, as the Motley Fool’s Bruce Jackson pointed out. He also warned about the folly of trying to predict when news stories (macro factors) are going to impact the share market, and thinking that can inform people about when to “jump in and out of the market”.

Jackson wrote:

Would your macro “analysis” have told you to jump back into stocks on October 1st, in advance of the big rally for that month?

And would your analysis now tell you to stay in, get in, get out or something in between?

I’d suggest it’s a futile exercise at best, and likely a sub-optimal investing strategy.

If you invest in the stock market, you should make it a lifelong endeavour, not something you jump into and out of depending on your mood, the market’s mood, or the macro environment.

In other words, if an investor sees an opportunity with an ASX share, it may be worth jumping on it. That bargain may not always be there. Plus, time in the market beats timing the market.

For me, a name like Wesfarmers Ltd (ASX: WES) could be something to like, with its diversified business operations, good dividend yield, investing in new areas for growth (lithium and healthcare) and its 25% decline this year.

The post Morgan Stanley tips how to pick the market bottom, but should you wait to buy ASX shares? appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX 200 dividend shares to buy next week
• Should you buy the dip in the Wesfarmers share price?
• Up 6% in October, is this factor why the Wesfarmers share price performed?
• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?
• Why I think the Wesfarmers share price is a buy after this week’s AGM

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a rough year for markets worldwide, and while the ASX has held up better than others, the downturn has likely left plenty of quality dividend shares trading for cheap prices. That’s good news for those looking to build passive income.

Of course, as with any investment, there are risks involved with holding shares.

But if I was about to retire, I’d be hunting for cheap ASX shares offering dividends right now.

Why I would invest in cheap ASX dividend shares for retirement

Investing in ASX dividend shares is a relatively reliable way to build a passive income, particularly if they can be found in the bargain bin.

Finding value ASX shares that also pay dividends can sometimes be a hard ask. However, they can provide both capital and dividend returns for a comparatively low initial investment when they are found.

Most ASX dividend shares pay shareholders twice a year, though some provide quarterly offerings.

Dividends generally represent a portion of a company’s profits for a particular period. Thus, they tend to grow alongside a business.

That means dividend shares can be a hedge against inflation.

It also means that, if I were about to retire, I would want to buy shares in companies that not only pay dividends, but also have plenty of room to grow.

That way, I could sit back and enjoy receiving regular payouts without worrying about actively managing my portfolio.

Here’s how I would search for cheap ASX dividend shares to help fund my lifestyle in retirement.

How I would seek out value dividend stocks

I would start by searching for cheap ASX dividend shares in sectors known to be undervalued that also boast clear future growth prospects.

From there, it would be wise to consider which shares I truly believe represent quality businesses.

Whether a business is ‘good quality’ is very subjective. However, quality companies generally boast strong balance sheets, a competitive edge, and a loyal customer base. That way, they’re likely to make the most of the good times and push through tough times.

I would also focus on de-risking my portfolio as much as possible. And by de-risking, I mean diversifying. Diversification is one of the most reliable ways to protect a portfolio from downturns in individual sectors or companies.

Finally, I would look for shares paying consistent dividends with sustainable yields.

Investing in cheap ASX dividend shares for retirement often means buying shares to hold for many years and decades. Therefore, it’s likely a green flag if a company has been paying decent dividends for years or decades gone by.

Additionally, while it might be tempting to buy shares with gigantic dividend yields, it’s worth remembering that such yields are hard to sustain in the long term.

The post Almost ready to retire? I’d buy cheap ASX dividend shares for passive income appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX 200 dividend shares to buy next week
• 3 reasons to tell yourself it’s okay to make financial mistakes in 2023
• Analysts name the ASX growth shares to buy
• Can you actually retire a millionaire with ETFs alone?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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